Operator: Welcome to the Fourth Quarter 2010 Earnings Call. My name is John and I'll be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. Please note that this conference is being recorded.
I will now turn the call over to Ms. Kristine Boyd, Director of Investor Relations. Ms. Boyd, you may begin.
Kristine Boyd - IR: Thanks, John. Good morning and thanks to all of you who are joining us this morning for our fourth quarter 2010 earnings call. On the call this morning are Mike Jennings, Chairman, President and CEO; Doug Aron, EVP and CFO; Jim Stump, VP of Refining Operations and other members of our executive management team.
Before we get started, I would like to read our Safe Harbor statement. The primary purpose of this conference call is to describe the assets, operations and certain current and historical financial conditions associated with Frontier Oil Corporation. This information and associated comments made during the course of this conference call may include forward-looking statements concerning the Company. These may include statements of plans and objective for future operations, statements of future economic performance or assumptions or estimates. The accuracy of these forward-looking statements is subject to a wide range of business risks and changes in circumstances that are described in the Company's reports that are filed from time to time with the Securities and Exchange Commission. Actual results and outcomes often differ from expectations.
Please note our call today does not constitute an offer to buy or sell any securities related to our recently announced merger with Holly Corporation. All solicitations to buy or sell securities and to secure shareholder proxy votes will be made under current SEC rules and regulations.
I would now like to turn the call over to our Chairman, President and CEO, Mike Jennings.
Michael C. Jennings - Chairman, President and CEO: Thank you, Kristine. Good morning, thanks for joining us today. This morning Frontier reported $4 million in net income or $0.03 per diluted share during the fourth quarter of 2010 compared to 2009 fourth quarter loss of $75 million or negative $0.72 per share.
Results for the most recent quarter included an after-tax inventory hedging loss of $10 million or $0.09 per share compared to an after-tax inventory hedging loss of $5 million or $0.05 per share for the fourth quarter of 2009. The year-over-year improvement in fourth quarter results was due to increases in each of the major contributors to refining profitability. Domestic diesel demand continued its steady increase, boosted by export opportunities in the global markets and it ended the year about 3.5% up from 2009.
Frontier's average diesel crack spread increased by more than $8 over the fourth quarter of 2009 to $15.21 per barrel in the most recent quarter. Gasoline demand improved through 2010 though to a lesser degree at about 0.5% over 2009 and Frontier's average gas crack increased to $5.65 per barrel in the fourth quarter of 2010, up from $4.40 in the same period of 2009.